Bruce Solomon sells Double Bay's Golden Sheaf Hotel

The Golden Sheaf hotel at Double Bay has been sold to an eastern suburb's private investor on a 6.6% net yield.

It is on a lease-back agreement, and while no price or buyer was formally disclosed, Fairfax Media suggests just above $40 million was paid by investor Vaughan Blank.

News Ltd papers say $41 million plus.

Bruce Solomon will remain the tenant of the Golden Sheaf, using the proceeds to expand the Solotel business.

It was listed in September through JLL and CBRE Hotels subject to leaseback to the hotel and hospitality group, Solotel.

The hotel was offered with a combined 40 year triple net lease to the Solotel Group, with a straight 20 year first term and fixed annual rental growth of 3% per annum.

It sold through John Musca, director, investment sales, JLL Hotels & Hospitality Group, and Daniel Dragicevich, CBRE Hotels director.

The hotel occupies a 1,669 square metre site area with future development potential.

The SMH previously reported it is considered among the country's most profitable pubs.

It was listed initially in mid-2011.

The heritage-listed 1936 pub was bought for $5,327,000 in 1991.

Its New South Head Road premises was expanded after $4.8 million was spent in 2006 with purchase of the adjacent George's restaurant from Leo Varvaritis.